Prime Minister Vaya Vandana Yojana (PMVVY) is a pension scheme. In which 8% interest payment and no GST will be applicable, ie goods and service tax is being formally launched. The scheme is set to be launched by Arun Jaitley Indian Finance Minister. The special thing about this scheme is that 8% interest will be saved on the savings.
Prime Minister Vaya Vandana Yojana has been launched to provide pension to senior citizens of 60 years or more.
Components of the Scheme
Here are the components of the Pradhan Mantri Vaya Vandana Yojana:
- Indian Citizens matured 60 years or more are qualified to put resources into PMVVY.
- The arrangement is open for membership from 04-May-2017 to 03-May-2018.
- One time premium instalment of around Rs 1, 44,578/ – brings a month to month annuity of Rs 1,000 for a long time.
- One time premium instalment of Rs 7,22,892/ – would give a month to month annuity of Rs 5000 (most extreme
Things you need to know about the Prime Minister Vaya Vandana Yojana
- The plan was launched some time ago. This plan is available from May 4, 2017, to May 3, 2018. Try getting a hook on it and take full advantage of the scheme as it is only out there for a limited time frame.
- This plan ensures a fixed return of 8 percent per annum on a monthly payment of 10 years.
- With the price tag of the arrangement, the last portion of the annuity will be paid on survival of the beneficiary till the finish of the approaching term of 10 years.
- Once the final three years of the policy have been completed (to meet cash requirements), 75 percent of the purchase price will be allowed by the government for borrowing. Loan interest will be paid from instalments of pension. The loan will be collected through the process of the claim.
- During the ten year period, pension monthly, quarter, half yearly, may be available according to the option chosen during the purchase of pensioners.
- This scheme has been exempted from service tax and GST.
- This plan can be purchased through both Life and Life Insurance Corporation (LIC) both offline and online.
- There is likewise consent for untimely withdrawal of this plan for the treatment of genuine sickness of any of the mates. In the case of clearance before such time, 98 percent of the purchase price of the scheme will be refunded.
- As indicated by the announcement of the Finance Ministry, the obligation of running this plan has been given to the Life Insurance Corporation of India.
- For the treatment of any serious/terminal illness of the spouse, or there is also permission for premature withdrawal of this scheme. In the case of clearance before such time, 98 percent of the plan purchase price will be refunded, in the case of withdrawal.
- The government will pay the cost associated with the cost of administrative and interest related to LIC in the form of cost and subsidy related to interest and real interest.
Objective of the Pradhan Mantri VVY
- The scheme was launched to help the poor people who have turned old and are unable to go fend for themselves.
- This would provide the old folks with a base of income that they may use to fulfil whatever it so they wish to do with the money.
- Bringing together the government and the folks at the age of 60 is the main aim of the government.
The scheme was always set in a way that it could benefit the people who can’t afford even the daily needs to survive. Benefitting the old aged people when schemes as such as the Pradhan Mantri Vaya Vandana Yojana as the pilot pension scheme launched by the government of India and now has been implemented under many different names in every state of the nation, to keep the old folks of our nation well and healthy.